Our Process: How We Invest

55,000+
(All Major Exchanges)
Step 1

Investable Universe

The first run of broad-entrepreneur attribute filters is handled quickly and efficiently through 4 quantitative screens applied simultaneously. These filters are applied to a global universe of 55,000 stocks and reduce the selection pool down to approximately 3,000 companies.

Investable Universe

Filters in this step are used to identify core team and firm characteristics.

3,000+
Global Universe of Potential Entrepreneurs
Step 2

Quantitative Filters

The second step applies additional quantitative filters to reduce our pool of 3,000 companies down to approximately 1,000.

Quantitative Filters

Filters in this step are used to assess liquidity and market cap.

1,000+
Investable Universe of Entrepreneurs
Step 3

Quantitative and Qualitative Filters

The third round of filters are applied to the remaining 1,000 companies and reduce the selection pool down to approximately 500. We apply a combination of quantitative filters and company-by-company examination during this step.

Quantitative and Qualitative Filters

Filters in this step are used to assess bankruptcy risk, strategies for growth, and compensation metrics.

500+
EntrepreneurShares Global Universe
Step 4

Global Universe to Active Portfolios

We then perform fundamental analysis on a firm-by-firm basis and examine recent news stories/developments that cannot be easily assessed with filters. This level of analysis brings us to our Actively managed portfolios with which we seek to beat our own Entrepreneur Universes as well as peer benchmarks.

Global Universe to Active Portfolios

Fundamental analysis is used to assess traditional valuation metrics, trends, relative comparisons to peer companies, and new stories.

Actively Managed Portfolios
Step 5

Monitoring and Rebalancing

As a general rule, we have very low turnover and are largely a buy and hold shop. We perform quarterly rebalancing based on consistency with our 15 entrepreneurial attributes.

Monitoring and Rebalancing

The EntrepreneurShares Difference

EntrepreneurShares has created a new style of investing in Entrepreneurial companies.

Visionary Entrepreneurs have significant economic and non-economic incentives to deliver strong performance. This has the potential to translate into superior returns for their shareholders.

Want to learn more? Contact Us